In the Stocks specifications, the commission is stated as 0.05%. But what does this percentage mean?
The stock commission is calculated as 0.05% (one direction) of the current stock price (bid or ask) multiplied by the number of stocks you want to trade.
Let's see an example:
You open a sell order for the Apple stock in 0.03 lot volume.
Since 1 lot equals 100 stocks, 0.03 lot equals 3 stocks.
The current bid price for the stock is 134.93.
0.05% will be charged twice: during opening and closing an order. Thus, 0.05% + 0.05% = 0.1% (or 0.001).
This way, the commission will be calculated as follows:
134.93 * (0.03 * 100) * 0.001 = $4.04
Thus, $4.04 is the commission to be paid for the 0.03 lot sell Apple order.